Malaysia says country will not accept Bitcoin as legal tender (2024)

FAQs

Does Malaysia accept Bitcoin? ›

Bitcoin & Cryptocurrency Trading in Malaysia

The Malaysian government does not recognize cryptocurrencies as legal tender, but it has announced that they are not banned. Still, the government has issued a few regulations where it requires exchanges to take serious measures in protecting users and their assets.

Ghana, Lesotho, and Sierra Leone has bans, as do Egypt, Libya, and Morocco. In Latin America, Bolivia's Financial System Supervision Authority issued a resolution in 2014 prohibiting the use of Bitcoin and other digital currencies, citing a lack of consumer protection and the potential for money laundering.

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NOT ILLEGAL

It is perfectly legal in Malaysia to mine, buy and sell cryptocurrency. Cryptocurrency, however, is not recognised as legal tender in the country so cannot be used to pay for goods and services.

Only banknotes and coins issued by Bank Negara Malaysia (BNM) are legal tender (i.e. can be used legally in Malaysia). The banknotes and coins must not be defaced for it to be legal tender. In the case of coins, there are limits to which you can use them to make payments.

The list of the most crypto-friendly countries as of December 2023 includes Portugal, Malta, the UAE, Germany, Bermuda, the Cayman Islands, El Salvadore, Georgia, Singapore, Hong Kong, Malaysia, Puerto Rico, Switzerland, the British Virgin Islands, and Gibraltar.

Some of the countries where cryptocurrency is illegal are: Qatar. Saudi Arabia. China1.

Currently, only a handful of countries have decided to adopt cryptocurrency as a legal tender, most prominently among them El Salvador and the Central African Republic (CAR).

For tax purposes, Bitcoin is usually treated as property rather than currency. However, exceptions exist, such as El Salvador, the first country to recognize Bitcoin as legal tender in June 2021.

Is Bitcoin a security in Malaysia? ›

FAQ. Crypto adoption is on the rise worldwide, and Malaysia is no exception. While the country doesn't consider digital assets to be legal tender, it still defines them as a form of securities.

Malaysians who would like to sell your Bitcoin to altcoins can do so at the three approved exchange platforms in Malaysia. The three platforms are Luno, Sinegy, and Tokenize Exchange. There are also other platforms, like Etoro, Coinbase, and StormGain.

As of April 2024, it is legal to buy Bitcoin in Malaysia. However, Bitcoin is not legal tender in the country. While holding and buying Bitcoin is legal, cryptocurrency payment methods in Malaysia are prohibited at local businesses unless the business explicitly chooses to accept them.

As Malaysia does not tax capital gain, only revenue gains arising from the disposal of digital currency is taxable. A person who trade digital currencies actively may be viewed as generating revenue from the activity, thus gains from this digital currencies trading is taxable.

Malaysia is rich in mineral resources, and mining (including petroleum extraction) accounts for a significant portion of GDP, although it employs only a tiny fraction of the workforce. The major metallic ores are tin, bauxite (aluminum), copper, and iron.

To buy Bitcoin in Malaysia, follow these simple steps: choose a reputable exchange available in the country (such as Binance, Kraken, or Changelly); create an account on the chosen exchange and complete the verification process (if needed); use the fast buying option or fund your account using the available payment ...

Absolutely! The use of Coinbase in Malaysia is completely legal and above board.